Current Yield

Bonds Acting Like Bonds Again

Bonds finished January on a tear, defying conventional wisdom that yields were destined to creep higher throughout 2014. Shunned last year, some longer-dated bonds, particularly munis, are finding favor again.

Bonds held firm last week amid global financial-market turbulence. The 10-year Treasury yield fell to 2.65% Friday from 2.72% a week earlier and 3.01% in early January. "At the start of the year, the market was generally positioned long credit-risk, short interest-rate risk, and long equities," says Matthew...